India’s benchmark equity indices ended Monday’s trading session marginally lower after staging a sharp intraday recovery. Global trade concerns over the fate of U.S. tariffs seems to have weighed heavily on market sentiments, despite midcaps and banking shares showing continued resilience.

The BSE Sensex fell 77 points to close at 81,374, while the NSE Nifty 50 declined 34 points to settle at 24,717. Earlier in the session, both indices had plunged sharply, following weaker Asian markets, before recovering most losses by the close of the session today. 

The broader market outperformed, with the Nifty Midcap 100 rising 154 points to end at 55,903, rebounding nearly 600 points from its intraday low. The Nifty Bank index gained 356 points to finish at 57,776, inching closer to its record high amid renewed interest in private sector lenders.

Explaining the reason behind the sharp rebound, Kranthi Bathini, Director, Equity strategy, WealthMills Securities, pointed out that the market is trying to factor in selective buying.

“There is selective buying happening in the market right now. Most macroeconomic indicators for India remain strong—GST collections have held up well, and foreign portfolio investors, who were net sellers earlier, have now turned positive, especially on private sector banks,” Bathini said.

That shift in foreign flows helped temper broader concerns stemming from geopolitical volatility.

U.S. President Donald Trump’s move to double tariffs on steel and aluminium imports to 50% rattled global markets, stoking fears of a fresh wave of trade tensions. The metal pack led losses in India, with several stocks under pressure.

Mphasis dropped 3% after reports suggested the IT firm may lose one of its key clients. Also, auto stocks delivered a mixed performance following weak May sales numbers. Hero MotoCorp and Tata Motors declined 2% and 1%, respectively, while Mahindra & Mahindra rose over 1% on stronger-than-expected figures.

In the tech space, FSN E-Commerce Ventures, parent company of the beauty e-commerce major Nykaa, fell as much as 4% intraday to ₹195 before closing lower at ₹194. The stock has been under pressure in recent sessions, with brokerage Nomura maintaining a ‘neutral’ rating and a target of ₹216.

The session also saw mixed outcomes for two debutants: Schloss Hotels (The Leela) ended flat near its issue price, while Aegis Vopak rose 3% on its market debut.

Despite the recovery in domestic equities, Bathini warned of continued unpredictability due to external factors. “The behaviour of FPIs has been erratic, driven by rapidly changing international narratives,” he said. “As long as the U.S. administration remains volatile in its approach, uncertainty will persist. But India’s domestic fundamentals are intact, and that should offer some cushion.”

The Nifty is currently in a consolidation phase, according to Bathini, and market participants should brace for swings amid shifting global cues.

“Investors need to be prepared for frequent changes in sentiment. But the structural story for India remains strong,” he said.